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The Role of Federal Government in Making Health Coverage Affordable Essay Example

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The Role of Federal Government in Making Health Coverage Affordable

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The Role of Federal Government in Making Health Coverage Affordable. This research tells that the federal government plays a role in making health coverage affordable, which means subsidizing individual accounts for those who cannot reasonably afford health insurance. This has the effect of increasing demand for healthcare services (that is, by making more individuals able to pay for them) while keeping the supply of healthcare services the same. State governments are, in their current role, able to accept or reject optional policies offered by the federal government program. Thus, the degree to which people who cannot afford insurance can access these healthcare services will differ from state to state. Employers are an often-overlooked part of the reform equation.

Given that nearly 61 percent of working people in the United States had employer-based insurance in 2008, these reforms will have a central role in determining their plans. In general, however, larger employers will be required to keep their insurance programs under threat of the fine. Smaller employers will face fines for not providing coverage to their employees. Another hope of healthcare reform is that individuals, also under threat of fine, will be incentivized to find health insurance coverage, either if it is through their employer or through an insurance company. For those Americans who live under the poverty level, a subsidized form of insurance is provided only if those individuals (and their families) do not have employment-based coverage. The government’s roles in setting these conditions is a function of their goal to lower healthcare costs, which employers can have a central role in doing. However, a universal system of care would also make employer-based coverage, like the service from insurance companies, obsolete. Some other overlooked roles in the healthcare situation are played by academic institutions and the healthcare providers themselves. As previously mentioned, introducing subsidies that expand healthcare coverage to more individuals ignores the principle of supply-and-demand. . The Role of Federal Government in Making Health Coverage Affordable.

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Works Cited

Drum, K. (2009, December 22). Insurance companies and healthcare reform. Retrieved March 10, 2011, from Mother Jones: http://motherjones.com/kevin-drum/2009/12/insurance-companies-and-healthcare-reform

Guilloton, S. (2011, March 1). Obama offers a compromise on health care reform to the states. Retrieved March 12, 2011, from Examiner: http://www.examiner.com/health-care-in-national/obama-offers-a-compromise-on-health-care-reform-to-the-states

McClellan, M. (2009, June 2). The economic impact of health care reform. Retrieved March 10, 2011, from Brookings: http://www.brookings.edu/events/2009/0602_health_care_reform.aspx

Proto, R. (2010, June 7). The new health care economy: Can supply meet demand? Retrieved March 10, 2011, from The Huffington Post: http://www.huffingtonpost.com/randy-proto/the-new-health-care-econo_b_603092.html

Simon, K. (2010, May 24). Implications of health care reform for employers. Retrieved March 10, 2011, from American Progress: http://www.americanprogress.org/issues/2010/05/health_employers.html

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